EMC Adds Almeida, Carty to Board With Support of ElliottDina Bass and Beth Jinks
EMC Corp. named Jose Almeida and Donald Carty as directors as part of a standstill agreement with activist investor Elliott Management Corp., which has been pushing for a corporate overhaul.
As part of the accord, Elliott agreed to certain provisions through September, including voting to approve the entire 13-person board, EMC said today in a statement. Standstill agreements generally include limits on how much stock an investor can amass.
EMC, based in Hopkinton, Massachusetts, began a strategic review last year as Chief Executive Officer Joseph Tucci prepares to step down from that role some time before February. Elliott, EMC’s 10th-largest shareholder as of September, had been pushing the data-storage company since at least July to seek strategic buyers or spin off its VMware Inc. unit, people familiar with the matter have said.
“Both Joe and Don are strong and experienced executives,” Jesse Cohn, a portfolio manager at Elliott, said in the statement, referring to the new directors. “We believe they will bring invaluable perspectives to the board’s ongoing review of EMC’s strategic direction.”
Almeida, 52, is chairman and CEO of Covidien Plc, and Carty, 68, is a retired vice chairman of Dell Inc. and former chairman and CEO of AMR Corp. EMC had been looking at Almeida for the board and Elliott agreed with his selection, while Carty was suggested to EMC by Elliott, said people familiar with the companies, who asked not to be identified because the process was confidential.
EMC shares fell 2.5 percent to $28.94 at the close in New York. They have gained 14 percent in the past 12 months.